Murphy, State Workers Union Reach $120M Contract Agreement

Union members still must ratify deal that includes pay raises along with significant savings in healthcare plans

Credit: NJTV News

The Murphy administration has reached a tentative contract with the state’s largest public-worker union that includes raises for workers and millions in healthcare savings.

Under the four-year, $120 million agreement with the Communication Workers of America, workers would get a 2 percent raise each year.

In exchange, the Governor’s Office says the state would save over $70 million from changes to healthcare plans for union members, mainly from reducing reimbursement rates to out-of-network healthcare providers and creating ombudsperson positions to help workers find in-network coverage.

“Our tentative contract agreement provides fair wages, allows for CWA members to enter a new health care plan that generates significant savings for the State of New Jersey and taxpayers, and provides a fair premium share for members,” Murphy said in a statement.

The contract must still be ratified by union members.

The Murphy administration and CWA reached a retroactive, four-year deal last May to give workers a 2-percent pay raise. The price tag for that deal, which expires June 30, was $150 million.